AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has been trading downwards, impulsive wave [i] (coloured black) of the bigger wave A (coloured blue) has been developing. In the 1-hour chart, we can see that a cycle from the 0.8658 level has already shown us five waves higher, and this just confirms that we are going to see at least a pullback toward 50% of the cycle of 0.8658-0.9068. While the price stays below the last high at 0.9068, we can look for a selling position in the next few days. In accordance with our wave rules and taking into account that wave [iii] should extend 161.8% of wave [i], we can define the potential targets with measuring wave [i] with take profit at 0.8790 (161.8% of wave [i]).
Alternate count: Since there is the alternate count on the 1-hour chart, you must be awarehere that next leg lower can reach just the 0.8880 level, 100% of the wave [a] before the price turns higher. When the price reaches this minimum target, we can move our stop loss to breakeven and create risk-free positions.
Support and Resistance
(S3) 0.8822, (S2) 0.8875, (S1) 0.8926, (PP) 0.8979, (R1) 0.9030, (R2) 0.9083, (R3) 0.9134.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 0.8980 with stop loss at 0.9068 take profit at 0.8790 are recommended.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Elliott Wave Analysis of AUD/USD for February 14, 2014 . Thanks for your support on Elliott Wave Analysis of AUD/USD for February 14, 2014
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